2010 Real Estate Guide
A yellow house with white trim, a dark roof and the sky
mortgage
What's best mortgage for your lifestyle?

Mortgage indexes
Next
7 of 10
Back

What is it? Mortgage indexes such as Libor (London Interbank Offered Rate) and COFI (11th District Cost of Funds) represent the constantly fluctuating rates lenders pay to borrow money as economic conditions change. Adjustable-rate mortgages are tied to these indexes -- mortgage contracts usually set an adjustable rate at Libor or COFI, plus a certain number of percentage points called a margin.

Borrowers with ARMs -- especially those whose loans are approaching their reset date -- should keep an eye on these indexes to help plan for fluctuations in mortgage payments.

Find the latest mortgage index rates.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Polyana da Costa

Bullish jobs report bad for rates?

The employment report released this morning is great news for the economy but not so much for mortgage borrowers.  ... Read more

advertisement
Partner Center
advertisement

Connect with us